Due to the growing cost of living, it’s been a lot harder for citizens to acquire personal loans. The cost for taking out loans has slowly but surely reached an extreme high, more expensive than it’s been for six years.
To get into the cold hard number, the average rate for a loan worth £10,000 ($11,917) is 4.11%, a rate that we haven’t seen since way back in August of 2016.
David Hendry, who works as CMO for Freedom Finance, had this to say about the whopping changes: “The latest consumer credit data paints a gloomy picture with the cost of borrowing continuing to increase as inflation spikes and the Bank continues to hike interest rates.”
He went on to add that if these rates continue to rise in the near future, borrowers may have the opportunity to lock in rates for consumer credit products. But this would only be in specific circumstances.
Another interest uptick in numbers were in the realm of average credit card rates, which soared up to 21.43%. This is the highest credit rates have been since 1998, further symbolizing the rapidly changing market. In any case, finance experts are on the scene, ready to advise at every step of the way.